problems and opportunities in our smaller cities and towns, our interest will, of course, extend to the entire complex of factors which comprise the economic climate of the area.

I am particularly concerned in this study about the out-migration from the small towns and rural areas. I say that because of the fact that I probably have one of the most representative districts that a Congressman can find. In my district is located the city of Rochester with all of its urban problems. There are suburan areas and also a rural community, Wayne County. I know, first hand, the problems created by this out-migration from small towns and from the rural community into the urban center. If we can find a way to encourage small business growth in the hometown area, not only will we help the smaller communities, but we will eliminate a problem, which larger cities are finding difficult, if not impossible, to cope with, namely, the explosive population growth.

Mr. Chairman, I am happy to join with you and our other colleagues on this subcommittee in this historic review of the state of small business in Small Town, U.S.A.

Mr. KLUCZYNSKI. Thank you, Mr. Horton.

Mr. Chairman, we have with us, as a new member, a great Congressman from the State of Utah. I know he is a friend of the small businessman.

May I present Mr. Burton.

Mr. BURTON. Thank you, Chairman Kluczynski.

I want to say at the outset how honored I am to have a position on this committee and to serve under your leadership and under the leadership of the gentleman from Tennessee.

I most willingly gave up an assignment on a major legislative committee when it was indicated to me there was an opportunity of joining you and the staff on this Small Business Committee.

The district which I represent, Mr. Chairman, is one of the largest, in terms of area, in the United States. There are many small cities and towns in the district ranging from Logan near the border on the north, down to Kanab, near the Arizona border.

We have some 9,000 small businesses which are active in my district and thus this committee's work, dealing with problems associated with the preservation and growth of small business in small towns, is of great concern to me and to my district.

I consider myself fortunate to be a member of this important subcommittee and have the opportunity to participate in these hearings. Interest in my district is certainly keen with respect to these hearings, as attested by the volume of mail which I have received on the subject since the announcement of my appointment to the committee. I am sure that these hearings will provide a vehicle for better understanding of the problems of small business in the areas affected, and that our efforts here will result in meaningful recommendations for the solutions to these problems.

It is my hope, Mr. Chairman, that I will be able to make a worthwhile contribution toward this end. I believe my own people in Utah can offer much to this subcommittee in the way of suggestions and example. I would like to recommend, Mr. Chairman, at this time, that you give consideration to the possibility of holding hearings of this subcommittee in my district.

Again, Mr. Chairman, I would like to say that during the 5 years that I have served in Congress I have had the opportunity on a number of occasions to appear before you, and before the chairman of the full committee, Mr. Evins, in other capacities, pleading the cause of a small Western State which, I might add parenthetically, is 70 percent owned by the Federal Government. In each instance, I have found you and the gentleman from Tennessee to be most cooperative and statesmanlike in your consideration of our problems in the West. I look forward with a great deal of pleasure to serving with you.

Mr. KLUCZYNSKI. Thank you, Mr. Burton. We are happy to have you on this select committee and especially the Subcommittee on Small Business Problems in the Urban Areas. We look forward to having our committee visit one of those little towns in Utah.

We also have with us the gentleman from North Carolina, Mr. Broyhill.

Mr. BROYHILL. Thank you, Mr. Chairman.

As you know, I serve on the full committee. I do not serve on this subcommittee, but I have long followed your efforts with great interest. I commend you for the fine work this subcommittee has done. Because of my interest in the subject matter which the subcommittee is considering today, I ask if I could sit with you in your deliberations.

I want to join in inviting the subcommittee to come to North Carolina. We have often heard it said that North Carolina is a State of small towns and small cities. Certainly, it would be good if you could arrange a trip to our State.

Thank you very much for the opportunity to be here.
Mr. KLUCZYNSKI. Thank you, Mr. Broyhill.

We also have with us a member of the full committee, a gentleman from California who is not a member of the subcommittee but shows interest in the small businessmen. At this time, I would like to introduce to you my good friend, Jim Corman from California.

Mr. CORMAN. Thank you, Mr. Chairman.

It sometimes has been said that Los Angeles is a group of small towns looking for a city.

That is not precisely accurate but I think the economic health of the small business community, whether it be in a large urban area or in the small town, is a vital part of our economic health and I commend this committee for its efforts, and I was interested in listening to your testimony today.

Thank you.

Mr. KLUCZYNSKI. Thank you, Mr. Corman.

At this time, the Chair recognizes the chairman of the full committee, Mr. Evins, to introduce the first witness.

Mr. EVINS. Mr. Chairman, you are most kind, and I see in our audience an old friend of mine. I think it is rather interesting, as you open these hearings, that you have the testimony of a county judge, from a rural county of Tennessee.

I have known this man for a number of years. He was county trustee for a long time. He was the State president of the Tennessee Trustees Association, and he has recognition all over our State of Tennessee as a man of great integrity and ability.

He is a fine gentleman. He is a great county judge. He is a great leader for growth and progress. He comes from the little county of Clay which was named for Speaker Henry Clay on the Kentucky border. He is a grand gentleman in every way and I am pleased to see him and to present him to you. He is my friend. We have been riding the same rails together for a long time.

Frank B. Halsell, the county judge of Clay County, Celina, Tenn.

TESTIMONY OF JUDGE FRANK B. HALSELL, CLAY COUNTY, TENN.

Judge HALSELL. Thank you, Mr. Chairman.

Mr. Kluczynski and members of the Small Business Committee, it is a great pleasure for me to appear before this committee and present to you some of the problems of small towns of the United States of America.

As the chairman told you, I have been trustee for 16 years in Clay County and I am county judge now, which is an elective office of 8 years and I will be seeing more of these problems as time goes along. The first thing I would like to discuss is this matter of people leaving small towns and counties. In all of my campaigns for public office, I have campaigned in cities like Indianapolis, where people from our county now live. However, since the roads have gotten better, I don't have to go into the Indianapolis country quite so much. The people drive back and forth-take off a few days to come home to vote and I send literature and cards to friends in Indianapolis and they give them out in the communities there.

I have a text here. I would just like to read some of it as I go along.

A lot of these people who are still in these cities, when I meet them on the street, tell me they want to come back to Clay County and Celina and they still ask me, day by day, if there are jobs available at home. I had a fellow last week that was drawing $170 a week in Indianapolis and he told me he would come back home if he could make $70 a week. He has his home in Clay County, a brick home, and it is furnished and he doesn't even rent the home. He stays in it on the weekends.

Clay County has a population of 7,289 now. In the 1940 census it had a population of better than 10,000. So this committee can see how the people are leaving the small towns. That I am very much interested in. I would like to see something done to bring these people back. I believe they would be more satisfied in the smaller communities, and I think it would be a lot of help to the larger cities.

I would not want to try to tell any public official in any of the larger cities how to run their city or their problems but I think this would be one way that would help the small communities and at the same time would help the larger cities.

Despite the facilities in these larger cities-the parks; public health systems; educational systems-I think these people would be more satisfied if they were back in the small community.

Out of Clay County we have around 90 graduates each year from high school. We have run a survey on that. Out of this 90, 60 of them leave home and I say that we have got to do something to give

these boys and girls an opportunity in the small communities and small towns.

We have, of course, one Douglas Aircraft plant, 30 miles from Celina, which is in Gainesboro, Tenn., and I have people coming to my office, I would say, well, daily, wanting to know if there is any way I could help them.

Now, these are people out of Clay County wanting to come back. They are good citizens. On the other hand, I would like to tell you the story of an event that occurred just about 2 weeks ago. A man and his wife left Tennessee to go to the Indianapolis area-it might have been Tipton-to get a job. On the way, his car broke down. He ran out of money. His kids were hungry and so he broke into a store and was caught and he wrote me a letter, asking me to help him in some way, and he told me why he had done it; because his kids were hungry, and I did write a letter and he is, of course, back in Clay County now, and he goes to work this morning. I got him a job and got him a place to live, and he also told me that is what he wanted to start with but there was nothing for him to do there.

In 1948 I got into a small business myself in a grocery store and also in a service station but this is about the time that people were leaving Clay County and going north. So many people were leaving there, I had to close up like some of the rest in the same community and I think that if there is anything that would help the rural part of this country, that is, it would be building factories and providing more help for these small towns.

Mr. Chairman, that is all I have to say.

If there are any questions, I would be happy to answer them. Mr. EVINS. Judge, I want to thank you personally. I know the full committee thanks you for coming and giving us the benefit of your testimony.

You have told a human story of a county, that has a population of about 9,000 people and at one time had 15,000. In the outmigration, you lost several thousand people.

You told us the story of a high school in the county graduating about 90 to 100 and that 60 to 70 of these young people left the county. You told the story of the man, with his family, seeking employment. I know that you personally have done a great deal in your county to attract industry. You have a branch of a Wisconsin plant located there. It is an overall factory, is it?

Judge HALSELL. That is right.

Mr. EVINS. How many people does this factory employ?
Judge HALSELL. This employs about 300 people.

Mr. EVINS. The Government has built a large Corps of Engineers dam and reservoir, which is developed in the area.

Judge HALSELL. Yes, sir.

Mr. EVINS. The Dale Hollow Dam. This has a tendency to attract some tourists in the area because of the lake and the reservoir.

Judge HALSELL. Mr. Chairman, we also have which has been a help in that community-a Federal fish hatchery which we are proud

of.

Mr. EVINS. There is a need for more industry and more employment. This is the thrust of your testimony?

Judge HALSELL. That is exactly right; yes, sir.

Mr. EVINS. I say again we appreciate your testimony and I am sure the committee thanks you for coming and giving us the benefit of your views and your recommendations.

Judge HALSELL. I would like to say it is a great opportunity to appear before your committee and your fine staff here.

Mr. KLUCZYNSKI. Judge, I am also impressed with the testimony you have given to this committee this morning. It was right from the heart. I want to thank you.

I notice that you have a prepared statement here. Would it be all right to incorporate that and put it into the record?

Without objection, it will be made a part of the record. (The statement referred to follows:)

STATEMENT OF JUDGE FRANK B. HALSELL, CLAY COUNTY, TENN.

My name is Frank Halsell. I am 45 years old. I have been in public life most all of my adult life. I am now County Judge of Clay County. That is an elective office and the job is administrative and managerial. The term is for eight years. Before that I was County Trustee for 16 years. The Trustee is the elected tax collecting officer of the county. He runs every two years.

Without being aware of what I was doing at the time-a good politician acts an awful lot from instinct-I have been campaigning in Indianapolis, Indiana, for votes to be cast in Clay County, Tennessee. I have been doing that for many years. Going up there about once every three months to visit my wife's brother and his family. I have been meeting many friends who still are Clay County voters on the streets of Indianapolis and the streets of factory towns just north and south of Indianapolis like Tipton, Indiana. After 20 years of working away from home, they are still Clay Countians-many of them. These votes in the old days were cast as absentee votes. Now they don't even go to the trouble to do that. With the roads through Kentucky and southern Indiana as good as they are, they simply lay off a day or two at the factory and come home to vote in person. My wife and I never honestly thought about it until recently. I mean thought about what I was doing. But I've been campaigning in Indianapolis nearly all my political life. We've been up there so many times now that we don't need to go back so often. I simply wrap a few packages of campaign cards and mail them to our friends and name the factories that I want these cards put out in. Only last year in my race for County Judge, I mailed campaign literature and cards to friends and voters in Indianapolis. That plus seeing them back in Celina when they come home or in the tiny village of Moss where I live does the job. Do you know this that the better they do on their jobs on the northern end of the line, the better cars they drive and so they can come home more often and get back to work on time.

There are plenty of lakes and rivers to boat on around Columbus and Indianapolis for these better off citizen of Clay County to drive their boats on. But do you know what lake their boats stay on. Their boats stay on Dale Hollow Lake in Clay County, Tennessee. We're talking about the relatively well to do ones now. And when I say "citizens of Clay County, Tennessee," I think I am sensibly defining their status.

Clay County, Tennessee, had a population of 7,289 in the 1960 census. Clay County, Tennessee has a population of 4,000 in Indianapolis and the four or five industrial towns that surround Indianapolis. At least half our burials in our cemeteries in Clay County are the bodies of people who went off to "a far country and had to get back in death." Plenty of our people could afford to buy the best lots in the cemeteries at Indianapolis. But they couldn't rest there. And their kin, who survive them, couldn't rest if they knew they were in the ground there. Ninety-five percent of these people who have left us come back home to be buried. One undertaker in Celina wears out a hearse each year driving back and forth from that country.

My wife and I were sitting at home the other night talking. She said, "Frank, do you know there's been ten people told me already in this one week that they wished they could come back home and find a job." When Douglas Aircraft